HYDERABAD: Sindh CNG (Compressed Natural Gas) Association chairman Mumtaz Ali Jatoi appealed to the federal government to abolish gas load-shedding completely in Sindh and bring CNG sector into industrial tariff and adjustable tax net.

He said that there were rumours that a significant rise in gas tariff would be witnessed in January. If the gas tariff went up, that cheaper fuel would be out of reach of poor people and the sector would come to an end, rendering thousands of workers unemployed and then the recent announcement of Prime Minister Imran Khan to make Pakistan green and promote this CNG sector might go into a fiasco, he added. He was addressing a news conference held at the local press club on Monday. Association vice chairmen Dr Parshotam, Mukhtar Shaikh and other office-bearers were present on the occasion.

Mr Jatoi said that approximately 550 CNG stations in Sindh were almost closed from Dec 17 till today, while they were supplied gas for only 47 hours during two weeks. He said that CNG and captive power plants inked accords with Sui Southern Gas Company (SSGC) for 12 and 9 months respectively. He said that the plants should not be supplied gas during three months during winter season as per the agreement, but they were being supplied 50 per cent gas even now.

He said the captive power plants could be run on furnace oil and they got economical electricity and run their generators on gas. He said that if the plants needed 2 megawatt, they produced 4 megawatt for their own use and selling them to K-electric and Wapda.

“While total raw material of CNG sector bristles with Sui gas and it has no other alternative. This sector is applied dearer gas with sales and withholding taxes at Rs1,618 per million cubic feet per day (MMBTU). Captive power plants obtain gas for Rs1,025 per MMBTU and they paid GST and later on, it (GST) is adjusted at 17 per cent,” he said.

He stated that CNG sector was supplied dearer gas and it closed for four days a week in all seasons and now for weeks.

Condemned the bid, he said liquefied natural gas (LNG) mafia wanted to give Sindh re-gasified liquefied natural gas (RLNG).

He said Sindh produced 2400 MMCFD and consumed 1200 MMCFD while the CNG sector used only 62 MMCFD. He said that according to the constitution of the country, if a province produced more product, it could give it to other provinces after fulfilling its own requirement. He said that despite of it, Sindh was facing gas load-shedding, which was an utter violation of the constitution.

He said the SSGC claimed that it gave first priority to domestic consumers, then the second priority should be accorded to the CNG sector because thousands of poor workers were scratching a decent living from that sector. He said the (CNG) sector consumed 2.8 per cent gas in Sindh.

He said the SSGC closed gas while giving reasons, including low pressure, more consumption and others, during winter season.

Later on, the association leaders, including owners and workers of the CNG stations, protested outside the local press club.

Later they went to the Sui Southern Gas Company (SSGC) regional office Hyderabad and staged a protest sit-in outside the office for one and half-an-hour. They met SSGC officers concerned and presented suggestions to restore gas to CNG stations immediately and close gas to captive power plants. The officers assured them of forwarding the proposals to the authority concerned, according to Mumtaz Ali Jatoi. Later, they called off the demonstration.

Published in Dawn, December 31st, 2019